Pakistan documents over 600 governance reforms in 2025, report shows

Pakistan undertook more than 600 governance and institutional reforms during 2025, marking a sharp expansion in the scale and scope of state-led reform efforts, according to the Pakistan Reforms Report 2026 released this week.

The report, which tracks reforms across federal ministries, regulators and attached departments, records approximately 660 initiatives implemented across more than 135 federal institutions, including 24 ministries and over 110 departments and authorities. This represents a fivefold increase from the 120 reforms documented in the inaugural 2025 edition.

According to the report, the growing volume of reforms reflects a shift toward a more structured and institutionalised reform process, moving away from ad-hoc or personality-driven initiatives. Standardised reporting, cross-sector comparison and alignment with the UN Sustainable Development Goals (SDGs) have now become embedded features of the reform framework.

ENERGY, JUSTICE AND DIGITAL GOVERNANCE LEAD

Reforms were concentrated in key sectors linked to fiscal stability and service delivery. The power and energy sector accounted for the largest share, with 118 reforms aimed at addressing circular debt, pricing, and consumer transparency. The law and justice sector followed with 96 reforms focused on digital courts, procurement oversight and enforcement mechanisms.

Digital governance and information technology emerged as a central pillar, with 74 reforms centred on automation, online platforms and data-driven systems. Economic management and finance accounted for 68 reforms, covering taxation, debt transparency, capital markets and oversight of state-owned enterprises.

Other areas included foreign affairs and external relations (42 reforms), interior and security (39), health and social protection (36), science and technology (34), climate and environment (29), education and skills (27), transport and aviation (24), privatisation and SOEs (21), and information and media (19).

SHIFT FROM POLICY TO EXECUTION

The report highlights a notable transition from policy announcements to operational implementation. Roughly one-third of the reforms were digital in nature, delivered through portals, automated systems and online services. Governance reforms – such as the creation of new authorities, revised mandates and regulatory frameworks – formed the second-largest category.

Legal and regulatory changes increasingly complemented system-level reforms, while training and capacity-building were integrated directly into reform design rather than treated as separate initiatives.

GREATER FOCUS ON PUBLIC ACCESS

A growing emphasis on citizen-facing services was also evident. An estimated 160 to 190 reforms directly improved public access through digital service portals, grievance redress systems, mobile applications, case-tracking tools and online certification.

The power sector led in consumer-focused reforms, particularly in billing transparency and complaint mechanisms. The justice sector expanded access through digital law repositories and alternative dispute resolution systems, while reforms in foreign affairs focused on streamlining visa and consular services.

FISCAL IMPACT CONCENTRATED IN ENERGY SECTOR

The report identifies the energy sector as having the largest measurable fiscal impact. Circular debt restructuring arrangements totalled PKR 1.225 trillion, while renegotiation of independent power producer (IPP) contracts is projected to generate PKR 4.2 trillion in lifecycle savings, including PKR 1.4 trillion in direct savings.

While fiscal benefits in other sectors were less immediately quantifiable, reforms in taxation, procurement and dispute resolution were assessed as contributing to investor confidence. State-owned enterprise reform and privatisation, however, were flagged as areas facing continued implementation challenges.

HUMAN CAPITAL AND SDG ALIGNMENT

Implementation capacity expanded significantly during the year, with between 12,000 and 15,000 officials trained or upskilled. Key initiatives included over 12,600 Skill Tech certifications and more than 7,000 government officers trained through Google Career Certificates.

In terms of development priorities, reforms aligned most strongly with SDG 16 (Peace, Justice and Strong Institutions), followed by SDG 9 (Industry, Innovation and Infrastructure) and SDG 7 (Affordable and Clean Energy). Climate-related reforms were present but comparatively limited, with the report noting the need for greater scaling given Pakistan’s vulnerability to climate risks.

REFORMS AMID POLITICAL AND SECURITY PRESSURES

The reform agenda progressed despite fiscal constraints, political polarisation, security challenges in Balochistan and Khyber Pakhtunkhwa, and the India–Pakistan military escalation in May 2025, which temporarily strained administrative capacity. The report concludes that reform momentum was largely sustained, pointing to increased institutional resilience.

Overall, the Pakistan Reforms Report 2026 describes the country’s reform trajectory as incremental and uneven but structurally advancing, with governance institutions increasingly forming the backbone of state reform efforts.